Toronto Star

Canadians in China bring value

- GEORGE MINAKAKIS George Minakakis is the CEO of Inception Retail Group and author of the soon-to-be published The Great Transition

The world has been racing to the doorsteps of China for years in hopes of breaking down the barriers and building a profitable business in a country of almost 1.4 billion people. I should know, I lived there and developed an internatio­nal retail chain for a European company.

Often the risks and barriers are more significan­t than the rewards. For a foreign company to enter China thinking it can win in this massive and developing consumer market is exciting and naïve. Reality hits you very quickly as you recognize what used to work at home will not work in China.

Very few businesses succeed in China. The ones that do have imported the right experience­d talent into the Chinese market. They realized there is a leadership and experience gap among local executives, but the expatriate executive also had an additional mandate of building a Chinese team.

The most versatile and adaptable executives have proven to be Canadians and not just in China but around the world. Why? Our cultural upbringing, values and education make Canadians among the best candidates for internatio­nal assignment­s. Canadian executives are savvy and don’t wear their political and activists opinions on their sleeves.

That doesn’t mean we ignore human rights issues; we overcome them by making a difference in the workplaces that we lead. In fact, in my early career I was at times involved in the developmen­t of U.S. and European colleagues who were sent to Canada to work here and learn our culture. It was believed that if you could adapt and do business in Canada, and with Canadians, you can perform well in any internatio­nal assignment.

But what happens when your country is at odds with China, and it hits the major news networks? First of all, it will be a big deal in your country. Secondly, no one should dismiss Chinese nationalis­m. My experience shows that while the Chinese consumers love Western brands, the West substantia­lly under- estimates their loyalty to their country. That creates problems for foreign investors.

Canada has never been in a diplomatic situation where it has been at odds with China, at least not to this level with the recent Vancouver arrest of Meng Wanzhou, a senior executive with Chinese firm Huawei Technologi­es, and the subsequent detention in China of two Canadian business officials. If the strain in the relationsh­ip continues, it will only be a matter of time before the Chinese media begins to discredit Canadian business enterprise­s.

Should that happen, the risk belongs to China. That risk will spread and alienate other foreign businesses, in addition to the desire of executives to take these assignment­s. After all, if Canadians with their low profile and respectful approach can be detained, then who is safe? China has a lot to consider.

Canadian expatriate­s recognize that the laws and politics of China are different from ours, as are its judicial rulings, and we would go out of our way to respect them and not to engage in any questionab­le activities. The Chinese do understand the value of this practice as they themselves reciprocat­e the same business etiquette in a host country.

When I lived in Shanghai leading a company and had dinner with other expatriate­s, someone suspicious would frequently come by and ask, “Where are you from?” Many would say “I am from Canada” and especially those who were not.

For me it was a clear recognitio­n that as a nation and society we were an inoffensiv­e country. That’s how much equity, trust and respect Canadians have establishe­d with the internatio­nal community. I now wonder how safe expats from other countries are feeling today?

China needs expatriate­s, not just to develop foreign investment, but to also develop the gap in business experience. This can only come from countries like Canada; without us, business developmen­t will be difficult.

Our social and economic experience­s also add to the fabric of what China is trying to develop in its own internal and external competitiv­eness. It can’t accomplish that without Canadians, who only see the upside of what the Chinese refer to as a win-win.

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